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Teesa66
Level 4

Beginning Balance from Credit Card account that was unlinked showing on Balance Sheet?

Hi! When we initially set up our QBO accounts, we'd linked the business credit cards. We quickly decided to go a different route with the credit cards and unlinked the accounts. However our balance sheet shows a negative Beginning Balance for each of the cards. There is no other activity for these accounts. How do I clear these balances?

Solved
Best answer August 25, 2021

Best Answers
RCV
QuickBooks Team
QuickBooks Team

Beginning Balance from Credit Card account that was unlinked showing on Balance Sheet?

Thanks for checking in with us, Teesa66.

 

We can make the bank account inactive since there's no activity entered on the credit card account. If the account has a balance, QuickBooks will create a journal entry to zero it out. Please know that the transactions in the account will remain on your records and will still affect your reports. Here's how: 

  1. Go to the Gear icon on the top menu. 
  2. Choose Chart of Accounts.
  3. Click the down arrow beside the View register in the ACTION column.
  4. Tap Make Inactive.
  5. Press Yes to confirm.

 

To learn more about this one, see the Delete an account on your chart of accounts in QuickBooks Online article. To see your list of inactive accounts, you can click the Gear icon above the Chart of accounts table. Then, place a checkmark in the Include Inactive checkbox. If you'll want to remain the account active, we'll need to create a journal entry transaction to correct this. Let me show you how:

  1. Go to the New icon and select Journal entry.
  2. Enter the Journal date when the opening balance will take effect.
  3. For the Account fields, enter the Credit Card and Opening Balance Equity account.
  4. You can also check with your accountant when entering them, and then Save and close.

 

For the journal entries created, you can look into the Journal report. Just go to the Reports menu and then search and click Journal.  Also, for future reference, you can check the Reconcile an account in QuickBooks Online in reconciling your bank account. 

 

Feel free to visit our Banking page for more insights about bank feeds and reconciling accounts.

 

You can always update us on the result after performing the steps in the comment below. I'd like to ensure this is resolved for you. You have a good one. 

View solution in original post

1 Comment 1
RCV
QuickBooks Team
QuickBooks Team

Beginning Balance from Credit Card account that was unlinked showing on Balance Sheet?

Thanks for checking in with us, Teesa66.

 

We can make the bank account inactive since there's no activity entered on the credit card account. If the account has a balance, QuickBooks will create a journal entry to zero it out. Please know that the transactions in the account will remain on your records and will still affect your reports. Here's how: 

  1. Go to the Gear icon on the top menu. 
  2. Choose Chart of Accounts.
  3. Click the down arrow beside the View register in the ACTION column.
  4. Tap Make Inactive.
  5. Press Yes to confirm.

 

To learn more about this one, see the Delete an account on your chart of accounts in QuickBooks Online article. To see your list of inactive accounts, you can click the Gear icon above the Chart of accounts table. Then, place a checkmark in the Include Inactive checkbox. If you'll want to remain the account active, we'll need to create a journal entry transaction to correct this. Let me show you how:

  1. Go to the New icon and select Journal entry.
  2. Enter the Journal date when the opening balance will take effect.
  3. For the Account fields, enter the Credit Card and Opening Balance Equity account.
  4. You can also check with your accountant when entering them, and then Save and close.

 

For the journal entries created, you can look into the Journal report. Just go to the Reports menu and then search and click Journal.  Also, for future reference, you can check the Reconcile an account in QuickBooks Online in reconciling your bank account. 

 

Feel free to visit our Banking page for more insights about bank feeds and reconciling accounts.

 

You can always update us on the result after performing the steps in the comment below. I'd like to ensure this is resolved for you. You have a good one. 

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